I've heard Dana trying to promote the idea, so I doubt he'd keep his fighters out of it. But it does seem like a potential issue if one of his fighters were to lose, so on the other hand I could picture him vetoing his fighters from competing. But if he were to allow it I think it'd go down something like this...
Heavyweight: Lesnar or Carwin
Light Heavyweight: Machida or Silva
Welterweight: GSP or Shields
Featherweight: Brown or Faber
Bantamweight: Yamamoto or Torres ... possibly Bowles(I'd have to see more of him)